My exhaust was from stock in 3 pieces, the header, the main pipe, and the baffle..
And black oil is dripping out from where these 3 pieces connect and I tried to seal these connection with heat durable tape.
(I haven't messed with anything else because the engine is quite new)
Do you want more details?

http://powerpedal.net/PPimages/13as.jpg
My exhaust is pretty similar to this one and in this picture you can clearly see one connection near to the end of the pipe and then a bolt on the baffle, that's where oil is dripping from..
Should I be concerned or is it something normal..?

Well as long as the bolt is tight it should not be leaking. what mix are you running? if you went by the instructions, your running rich. you might want to move the e clip to a leaner setting too. look uo carb adjustment or e clip settings. I have heard of oil dripping from the exit/sting but not at the seams. thats new for me, maybe someone else can comment on this?

I have oil coming out of the exhaust, no mater how much I tighten it. Also, oil on the head, cause I have so much compression, I have to loosen the spark plug to turn it over and start it.
If you have oil coming out here and there, and the plug looks like a sand color. It's a good thing! You know it's not running lean. Just clean up the mess from it, now and then.
I pulled off the header after 250 miles, and drained about 1/4 oz. of oil out of it. And the plug looks sand colored. So I know the motor is getting lube! -- Synthetic oil.
Shorty

I have oil coming out of the exhaust, no mater how much I tighten it. Also, oil on the head, cause I have so much compression, I have to loosen the spark plug to turn it over and start it.
If you have oil coming out here and there, and the plug looks like a sand color. It's a good thing! You know it's not running lean. Just clean up the mess from it, now and then.
I pulled off the header after 250 miles, and drained about 1/4 oz. of oil out of it. And the plug looks sand colored. So I know the motor is getting lube! -- Synthetic oil.
Shorty

Click to expand...

Haven't you tried sealing it or something like I did? Because where oil can come out air can too and that might be bad for the engine! try loctite or wrapping it around with durable tape or something.
castrol tts only haha, one step away from racing class :tt1:
(quite pricy though at 18euros per litre here in Greece!)

all 2 strokes will spit some oil out of the exhaust...this is normal.
but, the more oil you have in your gas, the more oil will come out of the exhaust.
look at any weedeater or 2 stroke motocycle exhaust...they all have some oil residue and will spit oil on occasion.
yours is dripping a lot because you are probably running the 16:1 gas/oil mixture that is recommended for the break in period. 16:1 is a lot of oil in a small amount of gas. (16 parts gas to 1 part oil) a 32:1 gas oil ratio is 32 parts gas to 1 part oil, so there is less oil in the mixture.
once you drop the mixture to 32:1(or whetever works best for you), there will be less oil coming out of your exhaust.
but if it's dripping where a screw is at, it's because the screw is not sealing in the threads. it may be tight, but oil can still seep past the threads. take the screw out and put some blue loc-tite on the threads and put it back in, let it dry for awhile, and that may seal it up good enough to stop the oil from dripping.
no matter what you do, oil will always drip from the exhaust. if you get this sealed up, the oil will just move further back and end up dripping out of the main exhaust exit...or wherever it can find a pathway out of the exhaust. remember, exhaust is pushing the oil out of the exhaust pipe.
the reason ios because when the gas/oil mixture is burned in the cylinder, some of the oil is not burned. it's converted to an oil mist, which gets to the rings and bearings for lubrication. some of the unburned oil mist will be blown out of the engine on the exhaust stroke. eventually, this mist will condense back into liquid oil, and get blown out of the exhaust.
a rich/lean mixture has nothing to do with oil coming out of the exhaust. when you talk about a lean/rich mixture, it usually refers to the air/fuel ratio...not the fuel/oil ratio.